Seven Secrets/Tips to Becoming a Millionaire
| Category: Entrepreneurship | Date: 2002-10-31 |
These thoughts are extracted from the book THE MILLIONAIRE NEXT DOOR, as seen on Oprah Winfreys fine show, which I watch regularly (enough free advertising for her - she doesnt need it!). The research for the book was done on people with a net worth of over a million dollars (3.5 million households in America, apparently). Ive written this piece in point form for brevity.
Portrait of a millionaire:
86% of millionaires are first generation - the money is not inherited. Accumulating wealth takes a long time. Most wealthy people dont reach millionaire status until age 50. A glimmer of hope for me then!
Two thirds of millionaires are self employed. A bit more hope for me then!
Many were "C-students", not As. Quite a number were told to take the journey of self employment. I believe doing this makes people much stronger. There is "no parachute in the journey of life". Most millionaires live on less than 7% of their wealth. They take 15% - 20% of their pre-tax income to live; thus living way beneath their means. Most of them drive a Ford And not a Cadillac or Mercedes Benz.
They usually dont have overseas trips, own luxury cars and new suits.
The authors found that most millionaires went to public schools -not private ones.
81% buy their cars and dont lease them.
If $35000-$43000 is the median net worth. Many aim to have 6 months salary as a reserve/emergency fund. However, many people cant afford to miss even a week of work. The majority of people are three pay-checks short of bankruptcy. Im not alone then!
We live in a culture, where less time is committed to service. Add value, be exceptional in the delivery of your product or service at all times.
*
7 RULES FOR BECOMING WEALTHY:
1. Live well below your means and be frugal. Have a budget - know how much you spend on food, clothing and housing. Many spend +- 20 hours per month planning and managing their incomes. (1/30th of age X income). Millionaires can live for 16 years off their capital - its a shift in lifestyle.
Millionaires:
2. Make achieving financial independence a priority in their lives.
3. Do not accept a substantial economic contribution from their parents.
4. As adults, they encourage their children to become self sufficient.
5. They have a clear vision of where their lives (including the financial area) are headed
6. Are good at targeting OPPORTUNITIES in any business: whether its scrap metal, garbage disposal, junk, waste management, or cleaning buildings. There is even a billionaire making candles.
Finally...and most importantly,
7. they choose the right occupation - the sooner, the better. Hope Ive made the right choice then!
About the author.
Craig Lock
"Information and Inspiration distributor"
craiglockbooks.com
Craigs books are available at:
http://www.nzenterprise.com/ and
http://www.novelty-gift.com/
The "original" Online Creative Writing Course
http://www.nzenterprise.com/writer/creative.html
P.S: Dont worry about the world ending today... its already tomorrow in "little" scenic and tranquil New Zealand
clock@xtra.co.nz
http://www.craiglockbooks.com
Portrait of a millionaire:
86% of millionaires are first generation - the money is not inherited. Accumulating wealth takes a long time. Most wealthy people dont reach millionaire status until age 50. A glimmer of hope for me then!
Two thirds of millionaires are self employed. A bit more hope for me then!
Many were "C-students", not As. Quite a number were told to take the journey of self employment. I believe doing this makes people much stronger. There is "no parachute in the journey of life". Most millionaires live on less than 7% of their wealth. They take 15% - 20% of their pre-tax income to live; thus living way beneath their means. Most of them drive a Ford And not a Cadillac or Mercedes Benz.
They usually dont have overseas trips, own luxury cars and new suits.
The authors found that most millionaires went to public schools -not private ones.
81% buy their cars and dont lease them.
If $35000-$43000 is the median net worth. Many aim to have 6 months salary as a reserve/emergency fund. However, many people cant afford to miss even a week of work. The majority of people are three pay-checks short of bankruptcy. Im not alone then!
We live in a culture, where less time is committed to service. Add value, be exceptional in the delivery of your product or service at all times.
*
7 RULES FOR BECOMING WEALTHY:
1. Live well below your means and be frugal. Have a budget - know how much you spend on food, clothing and housing. Many spend +- 20 hours per month planning and managing their incomes. (1/30th of age X income). Millionaires can live for 16 years off their capital - its a shift in lifestyle.
Millionaires:
2. Make achieving financial independence a priority in their lives.
3. Do not accept a substantial economic contribution from their parents.
4. As adults, they encourage their children to become self sufficient.
5. They have a clear vision of where their lives (including the financial area) are headed
6. Are good at targeting OPPORTUNITIES in any business: whether its scrap metal, garbage disposal, junk, waste management, or cleaning buildings. There is even a billionaire making candles.
Finally...and most importantly,
7. they choose the right occupation - the sooner, the better. Hope Ive made the right choice then!
About the author.
Craig Lock
"Information and Inspiration distributor"
craiglockbooks.com
Craigs books are available at:
http://www.nzenterprise.com/ and
http://www.novelty-gift.com/
The "original" Online Creative Writing Course
http://www.nzenterprise.com/writer/creative.html
P.S: Dont worry about the world ending today... its already tomorrow in "little" scenic and tranquil New Zealand
clock@xtra.co.nz
http://www.craiglockbooks.com
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